It is provided by international conventions in such a way that taxpayers who are resident in a state do not pay double taxation: both in the state in which they do business and in the state of residence. This does not mean that you can apply the convention for any non-resident in Romania and you cannot even apply the same tax rate.
Tax residence certificate
In order to benefit from the application of the Conventions for the avoidance of double taxation, the non-resident must make available to the employer the Certificate of fiscal residence. The certificate is issued every year from the financial administration of the non-resident’s country of origin. Without that certificate, the non-resident is obliged to pay the tax rate applied in the country where he obtains his income. The fiscal residence certificate presented during the year for which the payments are made is also valid in the first 60 calendar days of the following year, except for the situation in which the residence conditions change. This means that, in the first 60 days of 2014, the 2013 Residence Certificate can be used.
Certificate of attenstation of tax payment
If a taxpayer is a resident of a country with which Romania has concluded an agreement to avoid double taxation, the tax rate that applies to the taxable income obtained by that taxpayer in Romania may not exceed the tax rate provided in the convention that applies to that income . This means that if the tax in the convention is 5%, even if the tax in Romania is 16%, only 5% will be withheld. The rest of the tax will be paid in the country of the non-resident, but after he obtains from the Romanian ANAF the Certificate of payment attestation. If he does not have that certificate, he will pay the tax in full in the country of origin.